Morning News Call - India, March 12

Reuters Staff

7 Min Read

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FACTORS TO WATCH
11:00 am: Budget session of Parliament continues in New Delhi.
3:00 pm: PMO officials to meet exporters to discuss delays in GST refunds in
New Delhi.
5:30 pm: Science & Technology Minister Harsh Vardhan to release ‘Indian
Scientists: The Saga of Inspired Minds’ book in New Delhi.
5:30 pm: Government to release February consumer price inflation data in New
Delhi.
5:30 pm: Government to release January Industrial output data in New Delhi.
LIVECHAT - FX FOCUS
The U.S. dollar will retreat further over the coming year, giving way to an
ascendant euro. In Asia, the Chinese yuan is expected to slip only slightly over
the coming year. While the Indian rupee which has weakened nearly 2 percent in
2018 so far, is now expected to regain about half of those losses over the year.
Reuters polling editor in charge Rahul Karunakar will walk through the findings
and what they signal at 0930 IST. To join the conversation, click on the link: here
INDIA TOP NEWS
• France signs deals worth $16 billion in India; to deepen defence, security
ties
French and Indian companies signed contracts worth $16 billion on the first
day of President Emmanuel Macron's visit to India on Saturday, the French
presidency said in a statement.
• Central bank turns up heat on lenders after $2 billion loan fraud
Central bank has asked commercial lenders to provide it with details of all
letters of undertaking - a form of credit guarantee at the centre of an alleged
$2 billion fraud - issued by them in the past several years, according to four
bankers who have seen the directive.
• Union Bank says has $45 million direct exposure to Nirav Modi, Gitanjali
firms
Union Bank of India has direct credit exposure of about $18.4 million to
companies controlled by jeweller Nirav Modi, and another $26.9 million to
Gitanjali group of companies, its chief executive told Reuters on Friday.
• Before mega scam, PNB lost $431 million to fraud last fiscal year
Punjab National Bank lost $431 million to various frauds last fiscal year,
the government said on Friday, making it the biggest such loser among all
state-owned banks even before it uncovered an alleged $2 billion fraud this
year.
• Government to split Air India's debt ahead of stake sale - minister
India will transfer part of Air India's $8.5 billion debt pile to a special
purpose vehicle before selling a stake in the state-owned carrier, its junior
civil aviation minister told Reuters on Friday.
• India mulls action against cement companies for cartelisation - ET Now
The government is considering action against cement companies for
cartelisation, news channel ET Now tweeted on Friday quoting the union road
minister.
• Dutch Tata Steel says it should be exempt from U.S. tariffs
The Dutch arm of Tata Steel said on Friday the United States should exempt
it from new import tariffs on steel and aluminium, as it products were vital for
the American economy.
• Amazon video service looking to expand Indian regional content
Amazon.com's video service will look to add more regional content in India,
two company executives said, as it competes with a host of global and local
players for a bigger share of a fledgling online streaming market.
GLOBAL TOP NEWS
• Not just theater: U.S. officials defend Trump-Kim meeting
U.S. officials on Sunday defended U.S. President Donald Trump's decision to
meet with North Korean leader Kim Jong Un, saying the move was not just for show
and not a gift to Pyongyang.
• Japan PM, finance minister under fire over suspected cronyism scandal
Japan's finance ministry acknowledged that documents in a suspected cronyism
scandal had been doctored, said a senior ruling party official, as pressure
mounts on Prime Minister Shinzo Abe and his ally Finance Minister Taro Aso over
the case.
• Germany, China warn Trump tariff moves threaten global trade
Germany denounced moves by U.S. President Donald Trump to impose tariffs on
U.S. metal imports, saying Europe needed a united response to the threat and
echoing criticism from China that it risked undermining the global trade system.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• The SGX Nifty Futures were at 10,326.50, up 1.1 percent from its previous
close.
• The Indian rupee is likely to open higher against the dollar as U.S. wage
growth slowed in February, allaying fears of a quicker pace of rate increases by
the Federal Reserve.
• Indian government bonds are likely to fall in early trade tracking gains
in U.S. Treasury yields and crude oil prices, that make investments in Indian
debt less attractive. The yield on the 7.17 percent bond maturing in 2028 is
likely to trade in 7.66 percent - 7.73 percent band today.
GLOBAL MARKETS
• To celebrate the bull market's ninth birthday on Friday, the three major
U.S. stock indexes climbed almost 2 percent and the Nasdaq closed at a record
high, as February's jobs report assuaged fears of inflation and aggressive
interest rate hikes.
• A relief rally swept across Asian share markets after the latest U.S. jobs
report managed to impress with its strength while also easing fears of inflation
and faster rate hikes, a neat feat that whetted risk appetites globally.
• U.S. Treasury yields advanced on Friday after data showed the world's
largest economy created far more jobs than expected in February, reinforcing
expectations the Federal Reserve would raise interest rates at least three times
this year.
• Oil markets climbed on the back of a drop in the number of U.S. rigs
drilling for more production and as the U.S. economy continued to create jobs,
which industry hopes will drive higher fuel demand.
• Gold prices fell as the dollar held steady after data showed the U.S.
economy added a larger-than-expected number of jobs in February.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 65.17/65.2 March 9 84.46 mln -$284.03 mln
10-yr bond yield 7.68 pct Month-to-date 212.98 mln -$771.17 mln
Year-to-date 320.84 mln $319.73 mln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 65.1200 Indian rupees)
(Compiled by Swathi Nair in Bengaluru)